https://www.profitconfidential.com/u-s-economy/economy/economic-collapse-stock-market-will-crash-another-30-analyst/
Economic Collapse: Stock Market Will Crash Another 30%, Analyst
Mourad Haroutunian, BA, MA
Profit Confidential
2016-02-21T09:00:39Z
2016-02-20 05:26:54 David Stockmaneconomic collapsestocksworld economyFederal Reservenegative interest rateszero interest rate policyRenowned former U.S. businessman and politician David Stockman says those who don’t believe an economic collapse is coming must be “smoking something.”
Economy
https://www.profitconfidential.com/wp-content/uploads/2016/02/Economic-Collapse5.jpg
[caption id="attachment_57300" align="alignleft" width="273"] Businessman Currency Financial Crisis Concepts[/caption]
Renowned former U.S. businessman and politician David Stockman, who has for years been predicting an economic collapse worse than 2008, this time blasted all who don’t share his belief as people who must be “smoking something stronger than what” he “can legally buy in Colorado,” where he lives.“There is a recession that’s going to engulf the entire world economy, including the United States,” Stockman told CNBC over the phone on Thursday. “Everywhere trade is drying up; shipping rates are at all-time lows.” (Source: “I don't know what the bulls are smoking: Stockman,” CNBC, February 19, 2016.)The 70-year-old celebrity said that a rapidly deteriorating economic environment will send stocks and oil prices dropping even more than they already have.The S&P 500 has fallen 6.5% since the beginning of the year and crude oil has plummeted more than 17%. However, Stockman believes that the worst is yet to come, forecasting the S&P 500, which is now in the 1,900 territory, will plunge to 1,300 before making any new highs. He also predicts crude, which is now hovering around $30.00 per barrel, will slide below $20.00.In the meantime, gold prices are making use of the opportunity and have gained 20% since they hit a 52-week low late last year.Stockman, who expects to see a recession by the end of the year, said traders who are too upbeat about the U.S. economy do not consider global risk.He blamed the turmoil on central banks and monetary policymakers who have exhausted all options.“They should have the good graces to resign,” he said. “They are lost.”Countries representing almost a quarter of global gross domestic product (GDP) now have negative interest rates, including the eurozone, Switzerland, Denmark, Sweden, and Japan.However, Stockman doesn’t expect the Federal Reserve to adopt a sub-zero interest rate policy. Earlier this month, Stockman told Bloomberg television that the market is going to be mauled by bear.Stockman headed the Office of Management and Budget in the early 1980s during President Ronald Reagan’s first term.

Economic Collapse: Stock Market Will Crash Another 30%, Analyst

By Mourad Haroutunian, BA, MA Published : February 21, 2016

Businessman Currency Financial Crisis Concepts

Renowned former U.S. businessman and politician David Stockman, who has for years been predicting an economic collapse worse than 2008, this time blasted all who don’t share his belief as people who must be “smoking something stronger than what” he “can legally buy in Colorado,” where he lives.

“There is a recession that’s going to engulf the entire world economy, including the United States,” Stockman told CNBC over the phone on Thursday. “Everywhere trade is drying up; shipping rates are at all-time lows.” (Source: “I don’t know what the bulls are smoking: Stockman,” CNBC, February 19, 2016.)

The 70-year-old celebrity said that a rapidly deteriorating economic environment will send stocks and oil prices dropping even more than they already have.

The S&P 500 has fallen 6.5% since the beginning of the year and crude oil has plummeted more than 17%. However, Stockman believes that the worst is yet to come, forecasting the S&P 500, which is now in the 1,900 territory, will plunge to 1,300 before making any new highs. He also predicts crude, which is now hovering around $30.00 per barrel, will slide below $20.00.

Advertisement

In the meantime, gold prices are making use of the opportunity and have gained 20% since they hit a 52-week low late last year.

Stockman, who expects to see a recession by the end of the year, said traders who are too upbeat about the U.S. economy do not consider global risk.

He blamed the turmoil on central banks and monetary policymakers who have exhausted all options.

“They should have the good graces to resign,” he said. “They are lost.”

Countries representing almost a quarter of global gross domestic product (GDP) now have negative interest rates, including the eurozone, Switzerland, Denmark, Sweden, and Japan.

However, Stockman doesn’t expect the Federal Reserve to adopt a sub-zero interest rate policy. Earlier this month, Stockman told Bloomberg television that the market is going to be mauled by bear.

Stockman headed the Office of Management and Budget in the early 1980s during President Ronald Reagan’s first term.

Dear Reader: There is no magic formula to getting rich. Success in investment vehicles with the best prospects for price appreciation can only be achieved through proper and rigorous research and analysis. We are 100% independent in that we are not affiliated with any bank or brokerage house. Information contained herein, while believed to be correct, is not guaranteed as accurate. Warning: Investing often involves high risks and you can lose a lot of money. Please do not invest with money you cannot afford to lose. The opinions in this content are just that, opinions of the authors. We are a publishing company and the opinions, comments, stories, reports, advertisements and articles we publish are for informational and educational purposes only; nothing herein should be considered personalized investment advice. Before you make any investment, check with your investment professional (advisor). We urge our readers to review the financial statements and prospectus of any company they are interested in. We are not responsible for any damages or losses arising from the use of any information herein. Past performance is not a guarantee of future results. All registered trademarks are the property of their respective owners.

From: Michael Lombardi, MBASubject: Gold: The Stock Contrarian Investors’ Best Play of the Decade